SUPERMARKET Morrisons is celebrating after its best performance over the crucial Christmas period for seven years.

Compared to 2015, the chain posted a 2.9 per cent surge in like-for-like sales.

Morrisons also upped its full-year profit outlook after the better-than-expected sales hike for the nine weeks to January 1, pencilling in underlying pre-tax profits of between £330 million to £340 million.

David Potts, chief executive of Morrisons, said: "Eighteen months ago I said that this would be a colleague-led turnaround, and our improving performance is entirely due to the continuing hard work of the Morrisons team of food makers and shopkeepers."

Its expected underlying profits for the year to the end of January would mark a significant rise on the £242 million posted a year earlier.

Mr Potts said customers 'splashed out' over Christmas, with strong demand for its new premium Best range as they traded up for their festive food.

"Our customers are responding as we turn this great British business around," he added.